Posted 2 years ago on April 25, 2013, 2:53 p.m. EST by GirlFriday
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According to the SEC’s order instituting settled administrative proceedings against Illinois, the state established a 50-year pension contribution schedule in the Illinois Pension Funding Act that was enacted in 1994. The schedule proved insufficient to cover both the cost of benefits accrued in a current year and a payment to amortize the plans’ unfunded actuarial liability. The statutory plan structurally underfunded the state’s pension obligations and backloaded the majority of pension contributions far into the future. This structure imposed significant stress on the pension systems and the state’s ability to meet its competing obligations – a condition that worsened over time.

The actuaries have been warning about the public pension fund since the 40's (see link below). However, the 1994 Act made it much worse. Gov Edgar is still alive and Senate Speaker Mike Madigan is still holding office. However, he is probably the most powerful pol in IL (depends who is currently mayor of Chi). Mike's daughter, Lisa was also vying for Obama's senate seat back in 08. Mike is untouchable.
http://www.wbez.org/news/ghosts-illinois-pensions-past-104467